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how can i solve this prob---


Suppose you are offered an investment on January 1, 1996 with the following promised cash flows:
Date promised Amount
June 30, 1996 $25
December 31, 1996 $25
June 30, 1997 $25
December 31, 1997 $1,025
If you require a 6% annual percentage rate (APR) on your investments, what is the most you will be willing to pay for this investment?
$879
$981
$1,000

and


If you deposit $1,000 each year, starting today, in an account that pays 10% interest per year, compounded annually, what will be the balance in the account after you have made ten payments, assuming you make no withdrawals from the account?
$10,000
$15,937
$17,531
Guest Mar 22, 2012
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Guest Mar 22, 2012

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